Category: Amazon

08 Apr 2019
Bill Bishop with Ken Ouimet on Product Attributes as Key to personalization in retail part 2

Bill Bishop with Ken Ouimet: Product Attributes are Key to Personalization in Retail (Part 2)

This is Part 2 of a video series. Part 1: Bill Bishop Talks to Ken Ouimet About Price Image and Personalization is here.

Ken Ouimet, CEO and Founder of Engage3, met with Bill Bishop, Chief Architect at Brick Meets Click, at the National Grocers Association (NGA) Show in San Diego. They discussed recent studies on the gut microbiome that will deliver the ultimate 1:1 consumer personalization, the importance of developing a master data management for product attributes, and how retailers should start planning for a future where consumers use product attributes instead of brands to make purchase decisions. 

Below is the transcript of their conversation.


Ken: So Bill, when you think about personalization, what does a retailer need – what infrastructure do they need to have in place to be able to do that?

Bill: Probably the key thing a retailer needs to have in place to do the personalization is a rich set of product attributes. Now back in the day, product attributes were limited to color and flavor and a few items like that, but today many products have literally hundreds of attributes. It could be an ingredient attribute, it could be a claim attribute, it could be a health attribute. So there are entire businesses being built today to assemble rich attribution that allows a consumer to be able to make a judgment about a product and decide whether it really fits their need or not.

Ken: Most retailers that we work with, we see that they’re struggling just to maintain the product description.You know you’re talking about hundreds, thousands of attributes. How do you see a retailer managing those?

Bill: Well, the management of the attributes is tricky, and you’re absolutely right. Retailers struggle keeping track of data at a fairly basic level in many cases. But what I think the answer is, is that there will be third-parties who actually will assemble that data and transport it to you in a fashion, as a retailer, where you can put it to good use.

Ken: Yeah, it’s fascinating. Another interesting research that they’re doing at Davis–do you know Bruce German over there?

Bill: I’ve met him, yes.

Ken: Yeah, he’s doing some fascinating work on the gut microbiome. And they’ve just figured out how to sequence the polysaccharides in the sugars, and where that’s going is that they’ll be able to recommend diets specific to certain bacteria cultures. I think that could really transform–to be able to give consumers the information on what foods to eat to affect their gut bacteria cultures.

Bill: To me, the microbiome is a perfect example of personalization right down to the one-to-one level, because the analysis that can be done today will say exactly what your condition in your gut is and mine, and the recommendations would be highly personalized to your need. A retailer who delivers that kind of recommendation, and we feel the effect–which we’re likely to do with the microbiome–I mean, that’s pretty sticky stuff.

Ken: And there’s a lot of innovation going on with the dried foods right now. And then, what’s important is that you’ve got nutrients, like how much nutrients are stored in there. So giving that consumer that kind of information, I imagine, would be really powerful too, to direct them. Do they want frozen or canned, where are their nutrients going to be best?

Bill: The amount of nutrition is really something more and more people are interested in. So how a particular product is processed, whether it be frozen, canned, or dried. I mean if the retailer and the producer can explain which has the best vitamin and mineral components to it, that’s going to be very important to a growing number of people. And I think retailers can merchandise that very effectively, and maybe draw people back to center store.

Bill: I’m concerned that with all the good things that having product attributes available can do, that companies aren’t moving faster. Why do you think that is?

Ken: It’s a hard problem. First of all we have a huge change in marketing from mass marketing to personalized marketing. Then we need to tie the attributes to something–it has to be meaningful. The way we look at it is using them to create a consideration set of what each consumer will consider when they’re buying a product. Retailers struggle with just managing their product descriptions, and now you drill that down to a hundred attributes for each product–that’s a lot of work to manage. You look at some vendors like Amazon, they push it out to their vendors to manage, but if you’ve got 10,000 vendors that’s a lot to bring on-board to manage those. The other thing we see is master data management for the attributes. Each category is different, and will have a different set of attributes. And we’ll see that each consumer is different in what attributes they value.

Bill: So with the work you’re doing at Engage3 with consideration sets, is that going to help people move forward faster and realizing the full value of these product attributes?

Ken: Yeah, absolutely. The consideration sets are really magical. They allow us to make sure we serve up relevant products, but also they can allow us to use trade funds more effectively.

Bill: How do you develop a consideration set?

Ken: We look at the attributes of the products that the consumer is buying, and that’s a behavioral modeling point. So we use machine learning to cluster those sets of attributes and know what they’re looking for. And then there’s another way we manage it, is through what objectives does the consumer have, and that’s more of a top-down [approach]. Behavior will look at the history of when they set their objectives or maybe they’ve gone to the doctor and they see they’re gluten-free, you don’t want to wait for the history of the product purchases. You can start recommending right away.

Bill: Gotcha, so you’re able to help your clients more quickly implement and get to the value of these attributes, even though it’s a great big complicated job.

Ken: We’re moving in that direction. Today, we’re helping retailers manage their attributes to compare products with their competitors, so the store brands is a real challenge, especially with retailers like Aldi coming in with 90% store brands. How do you compare? You can’t just scan the UPC and know the product. So that’s a really important problem we’re helping them with. So that’s a smaller set of attributes, but where we see this going is to a broader set of attributes.

Bill: Developing this kind of expertise and developing consideration sets I think is going to really set Engage3 apart. I don’t know anyone else that’s doing that kind of work. I’m really pleased to hear you’re doing it.

Ken: Yeah we’ve been very innovative on that front. And we’ve got two patents issued, 20 in the pipeline, because we see those as being key to how retail is going to function in the future.

Bill: One of the things that I believe having good product attributes helps people do is when they know the attributes of products and they see several items with the same attributes growing. It’s an indication of a fundamental factor that’s attractive to consumers in both those products and probably indicative of a broader appeal. Do you see a role that Engage3 can eventually play in helping people sort see where the puck is headed in terms of some of the changing preferences?

Ken: Yeah, we’ve been starting to look at the categories on an attribute-basis, and that’s really fascinating. And so you start to think about understanding trends by attributes across a store. Things like gluten-free or organic or non-GMO, you start to see where there’s trends, and where you’re not allocating enough. When you start comparing to your competitors on those products, you might see that you’re short in some area or too heavy in some other areas.

Bill: So there’s really a number of different reasons why understanding the trends with respect to attribute beyond product sale is competitively valuable for retailers?

Ken: Yeah, absolutely. So they’re starting to look at their assortments on an attribute-basis, I think that’s a really interesting area. The other thing where we see that going is to understand the price–break down the price by attribute so we know, that way we can compare products better. To competitors or even products within the category, what should that gap be in price?

Bill: It’s interesting that you would say something like you just have in terms of gaps and attributes. We try to eat low-sodium products at our household, and the gaps between comparable items and the amount of sodium per consumption is huge. And we’d happily pay a premium, and we certainly like to have our attention drawn to the low-sodium items because that’s what we want. Right now we have to work hard to figure that out on our own. Is there going to be a way in which eventually you think people present their or curate their assortment so that things like low-sodium pop up more quickly and easily for folks like us?

Ken: Yeah, I’m starting to see retailers put signage up identifying the gluten-free products or the low-sodium products, but as you said earlier there can a hundred or thousand attributes for a product. I think it’s perfect of an area for a digital environment or to have a digital assistant that’s just guiding you by what you want, but reading through those labels is a lot of work and it’s too much work for most consumers.

Bill: Private label. Do you think these trends support more focus on private label? Will private label be more attractive as a result the emphasis on attributes and things like that?

Ken: It absolutely is. There’s an article recently in the Harvard Business Review where they were talking about consumers buy bundles of attributes as opposed to a brand. If you look at online, we’re seeing consumers search more by attributes. And probably the more that attributes–that data’s available and clean, we’ll see more of a focus on attributes than brands.

Bill: Love the idea that consumers are buying bundles of attributes. Now if I was in the brand business I think I’d get a little self-conscious.

Ken: I suspect where that’s going is it’s going to be competing on attributes much more than price. So I think we’re going to see attributes come up to the level of price in being a lever to move the sale. And the key is going to be knowing what attributes resonate with what consumer.

Bill: To reinforce your point, I will pay a pretty good price for dark chocolate to take advantage of the flavonoid effect and improve blood circulation. I’m not asking for, you know, a discount on that, I want the benefit.

Ken: I think we’re going to see more and more of that behavior, and that’s the exciting part about personalization. And it allows a manufacturer to capture more value when the consumer values hit, and they have the flexibility to price low to get people to try the product.

Ken: Well Bill, it’s been great talking to you and I always enjoy, over the last 25 years, getting together with you and your passion for pricing and your curiosity, and you’re always learning.

Bill: Well right back at you, you’ve had some amazing accomplishments and you’re clearly on the edge some additional major steps forward. You’ve got to be proud of that and your current company.

Ken: Well thanks, Bill, I look forward to seeing you again soon.

Bill: It’ll be my pleasure to get together with you whenever we can.

== End of Video

This is Part 2 of a video series. Part 1: Bill Bishop Talks to Ken Ouimet About Price Image and Personalization is here. For more videos like this, subscribe to the Engage3 newsletter, Pricing Trends. Subscribe here.

22 Feb 2019

Digiday: Retailers Experimenting with Dynamic Pricing Due to Amazon

Digiday: Retailers Experimenting with Dynamic Pricing Due to Amazon

In response to a recent investigative report about Target offering prices on its mobile app that differed depending on whether the customers were inside or outside the retailer’s physical locations, Suman Bhattacharyya of Digiday digs deeper into how the industry’s biggest retailers are experimenting with pricing.

In the article, Ken Ouimet, CEO of Engage3, discussed the evolution of retail pricing and the challenges involved. Everyday Low Price retailers like Walmart and Target are under pressure by Amazon’s pricing algorithms, which can make price changes millions of times per day. As a result, some retailers have resorted to applying similar algorithms to their online and in-app pricing. Although these pricing algorithms work well on an online platform, brick-and-mortar stores are having more trouble implementing it.

“In the 1970s, most retailers had national pricing,“ said Ouimet. “Today, pricing is much more localized; dynamic pricing lets you segment with time, and it’s not only about dynamic pricing but personalized pricing – the price will be different for every buyer, and the discounts will be different.”

Market leaders like Walmart and Target “are competing with Amazon with eyes wide open; they realize it’s a different game – in 15 minutes, a price can be old and it’s usually based on competition,” Ouimet said. “You can’t fight that pricing is becoming more localized, more dynamic, and personalized – in five to 10 years, everything you buy will be based on personalized offers.

Engage3’s mission is to create a retail ecosystem where consumers, retailers and manufacturers all win. They use data science so Consumers are only offered products they want, when they want it, and at a compelling price; Retailers maximize profits by targeting only high-intent consumers; and Manufacturers only invest in discount coupons that have ROI.

Read Digiday’s article here.

14 Feb 2019
Falling Prices

Falling Prices Store in Sacramento: A Review

The latest store turning heads in Northern California isn’t known for its purchase-tracking cameras or smart shelf tags—-it’s drawing crowds to its particle board bins. Engage3 visited Falling Prices for a full report on what the discounter has to offer.

Falling Prices, a store based in the Sacramento-area city of Carmichael, serves as a liquidator of Target and Amazon goods. The store is attracting customers through word of mouth and local news coverage, touting a unique pricing model. Though the store is only open 5 days a week, prices fall—as the store name suggests— from $6 to 25 cents throughout the week.

If any goods are left in the store by the end of Saturday, when everything is priced at 25 cents, they are thrown away. Interested shoppers have to balance savings and selection throughout the week before the store is restocked.

First Impressions

When I arrived in the parking lot, the thing I immediately noticed was the sign hanging from the storefront. “Falling Prices” was printed on a white banner held up by four ropes. It was a Thursday, or a $2 day at the store, and there was still a variety of items to search through.

Falling Prices Parking Lot
A full parking lot, largely due to the new Falling Prices store

Outside, one of the windowed walls displayed the price schedule and a list of the product types that the store carried. While standing outside, I noticed a steady stream of customers going in and out of the store, despite it being an ,early afternoon on a weekday.

Falling Prices Sign
An explanation and disclaimer outside of the store, as well as a category list

When I stepped inside, what caught my eye was the furniture in the store. Every piece of furniture, from bins to shelves to the checkout counter, was made from particle board. The shoppers paid no mind to the decor, and instead were busy sifting through the various bins.

The particle board bins were filled to the brim with shelf-stable food products and toys, among other items.  I could see dozens of shoppers wading through the bins, uncovering hidden objects, and placing them in their carts. Here, a four-pack of chocolate almond milk; there, children’s Halloween costumes of every size.

On the far end of the store was a section dedicated to holiday decorations. Wrapping paper, string lights, and home goods made up the bulk of the items here. Immediately next to this area was a bin full of showerhead replacements. Signage was unnecessary, as everyone in the store knew it was $2 Day at Falling Prices.

I continued through the aisles, stopping to search through the bins and pick up odd items. In my cart I carried a collection of bobbleheads, canned sparkling water, a pair of headphones, and a showerhead attachment from an earlier bin.

Showerheads at Falling Prices
Dozens of showerheads, all priced at $2

Despite the appearance of the store, I could feel the excitement of the shoppers around me. The combination of discounted items and a treasure hunt vibe made the store enjoyable to explore.

After taking a few pictures and retracing my steps through the aisles, I was ready to check out. The wait was on the longer side, but this was mainly from the sheer amount of items that customers ahead of me had picked up in the store. Each cart had 20 or more items inside, and I was tempted to go back and pick out a few more items.

I walked away from the store with more than I expected, both in purchases and in opinion. According to a news interview, the owner of the liquidation store is looking to expand to a second location. Bargain hunters may find stores of a similar kind popping up in the area, but competitors will struggle to find a pricing strategy clever enough to outdo Falling Prices.

Local news stations featured Falling Prices during its second week of opening, attracting a larger crowd of shoppers and more items to liquidate. In the video below from the KCRA 3 Facebook page, you can see a larger variety of the products available.

Falling Prices in Carmichael

😱 BARGAIN ALERT: 😱A new store in Carmichael is selling retail items that could otherwise be expensive for $6 and below!Get the details >> https://bit.ly/2sxw7Mm

Posted by KCRA 3 on Wednesday, January 16, 2019

This article is part of the Engage3 Visits series, where we explore concept stores and innovative retail technology. To learn more about our earlier visit to Sam’s Club Now in Dallas, you can read the blog here. For more information on our visit to Amazon 4-Star, the retailer’s customer-curated offering, you can click here.

09 Jan 2019
Sam's Club Now

Sam’s Club Now: A Review

sams club now signageIn response to the opening of new Amazon Go stores, Walmart and Sam’s Club are doubling down on its retail technology with an experimental store location in Dallas.  At the end of October, the retailer announced its latest venture: Sam’s Club Now. The shopping experience is similar to Amazon’s cashier-less convenience stores but with a larger focus on customer engagement. Engage3 visited the Dallas store to see what Sam’s Club Now had to offer, and we were surprised by how similar it was to the retailer’s traditional locations.

Compared to the tech-forward Amazon Go stores, Walmart seems to put the human experience first, aided by technology. According to the Sam’s Club press release, “Our associates are key to bringing this experience to life…we’ve known for a long time our associates make the difference, and that won’t change just because shopping preferences evolve.” 

This latest offering by Sam’s Club is about one-fourth the size of its traditional stores and includes electronic shelf labels. The retailer suggested the possibility of camera technology in the future as well. Purchases are done through the Sam’s Club Now app which tracks the items in a customer’s cart. Once the app is downloaded, a shopper can make grocery lists, search for items throughout the store, and use augmented reality features on certain products.

 

The Sam’s Club Now Experience

sams club parking
Sam’s Club Now Parking

On arrival, the first thing we noticed was the curbside pickup spots outside of the store. Apart from smartphone integration, it seems that Sam’s Club is focused on ease and accessibility with this experimental store. 

Once you enter with your club membership, you encounter a large charging kiosk with instructions on how to shop in the store. In order to make any purchases, you would need both a membership and a smartphone capable of downloading the app. There were no cash transactions in the store, so we had to rely on the Sam’s Club Now app. Thankfully, it was easy to set up. After opening the app and creating an account, we were ready to start shopping.

Sam's Club Kiosk
Sam’s Club Now Information and Charging Kiosk help you get started

 

From the entrance, we made our way around the store, noticing the electronic shelf labels that were set up throughout the aisles. It resembled the larger warehouse locations, but with a focus on items that could be easily picked up and scanned. However, products were still displayed and stored in the traditional Sam’s Club warehouse style. The pallets, bulk items, and stacked shelves made it clear that this was a Sam’s Club store.

 

Amazon Go Store and Sam’s Club Now Comparison

We compiled some photos of AmazonGo (left) and Sam’s Club Now (right) to give a side-by-side comparison.

 

Beyond the center store, there were separate areas for dairy, meat, and produce. These refrigerated sections featured a more limited assortment than the retailer’s larger stores, but each area had enough space to add more products down the line.

Sam's Club Departments
Center Store is separate from the refrigerated sections

For checkout, the retailer is relying on its experience with the Scan & Go app introduced two years ago. The app we downloaded allowed us to scan each item in our cart and track its total. When we were ready to check out, the transaction happened in the Sam’s Club Now app. Once it was complete, the app generated an e-receipt which we had to show upon exiting. Associates near the exit scan a QR code generated by the Now app, putting the checkout experience somewhere in the middle of the spectrum from tracking cameras to human cashiers.

 

sams club ereceipt
Showing your e-receipt on your way out

Sam's Club Now Electronic Shelf Labels
Sam’s Club Now Electronic Shelf Labels

We were thoroughly impressed by the app integration and electronic shelf labels, especially with how large the store is compared to an Amazon Go convenience store.

Amazon Go and Sam’s Club Now are operating different store sizes, but the smartphone-focused technology looks to fill the same need for shoppers. Easier navigation in stores and convenient, secure payments are featured in both. While Sam’s Club Now may be a much larger space, this experimental offering shows that retail technology is exploding in popularity. With the recent announcement of Kroger and Microsoft’s partnership, the trend towards smart shopping continues to grow.

To read our review of the Amazon 4 Star Store in Berkeley, California, click here.

 

 

27 Nov 2018
4-star

Amazon 4-Star Review

November 8, 2018 – BERKELEY, Calif.

With the launch of the latest store, Amazon now has three Amazon 4-star retail locations in the United States. The second store opened last week in Lone Tree, Colorado, surprising consumers that expected the Berkeley, California location to open first. Engage3 took a trip to the opening last week to see it in person, and here are some of our observations.

The Amazon 4-star in Berkeley opened its doors on November 5th to a short line of people, but soon the store was full of shoppers and press eager to see the products available. In the weeks leading up to the launch, I had read comments from small businesses in the area expressing their concern, but seeing it in person made it clear that the 4-star experience is not directly competing with these business owners.

Online Goes Offline

Compared to Amazon’s other retail ventures, 4-star is fairly tame; the concept of the store is to offer well-reviewed products from the online site in a brick-and-mortar location. No tracking cameras are set up and no cashier-free checkout is offered, making the store more like a traditional retailer than a cutting-edge convenience store competitor (Business Insider). We were allowed to openly browse the selection of products once inside.

What makes the store unique is how it approaches brick-and-mortar selling. Customer reviews are the basis for which items are sold in the store; if something is for sale, it means a large amount of online customers enjoyed the product. Amazon 4-star is also localized to the surrounding area, displaying a selection of products popular with Berkeley customers. These curated collections are available in the Lone Tree and Manhattan as well, and we will likely see this trend continue as more stores open.

4-star Welcome
The products in stock are all highly rated, pushing for quality over quantity.

4-star Books
Books and recommendations make up a large portion of the store, similar to Amazon Books.

4-star Trending
Items are curated for the surrounding area and based on popular orders.

Aside from the tables lined with trending purchases, the majority of items in the store were hanging on the walls with little separation. As soon as I left the table area, the number of items became overwhelming and difficult to sort through. If found myself looking at the curated collections more than anything else, and the shoppers around me were doing the same.

Compared to looking for gifts on the Amazon site, the experience of looking through seemingly endless shelves felt lacking. The categories were clearly displayed, but I had no interest of going row by row to look for something specific. A large Roomba vacuum exhibit dominated the back half of the store where the electronics were kept, and few customers were venturing into that territory. Shoppers focused on the curated tables and book displays instead. The scene reminded me of another brick-and-mortar bookseller in a condensed format.

To recreate the online shopping experience, recommended and related items appeared next to each other throughout the store. Online reviews and short descriptions accompanied many of the store’s products, but these when afterthoughts when compared to the Amazon Prime integration.

Gifts and Presence

While I went through the store, I noticed that many products have two price points: one for Prime members and one for non-members. The e-ink displays clearly tell a shopper the online rating for the product and how much they are saving with their membership. Every item had an Electronic Shelf Label that the employees could change when necessary.

The labels caught my attention, because they displays the online rating and number of reviews. Amazon was meticulous on this point, making sure every single item in the store had a dynamic label.

Many shoppers and news outlets are comparing the 4-star experience to existing “everything under one roof” retailers. The store has even been called a Millennial Brookstone (Forbes). However, what sets Amazon apart from these retailers is a focus on membership and community interaction.

The Berkeley location seemed more welcoming than Amazon’s other physical stores, especially compared to Amazon Go. Most of the customers in the store were curious families and couples, and it is refreshing to see the online retailer focus on more than their usual tech-savvy demographic.

Overall, the Amazon 4-star favors a traditional layout over revolutionary tech. It shares a target demographic with the retailer’s convenience stores, but offers a more reserved shopping experience. Even though the store was overwhelming at times, it felt warmer and more human than any of Amazon’s previous brick-and-mortar attempts. With its wide product selection, I can see holiday shoppers close to these stores turning to 4-star for their gift-giving.

15 May 2018
COO

Engage3 COO Edris Bemanian Talks Pricing Strategy, Pressures, and the Market

Last month, Robert Schaulis of Andnowuknow interviewed Engage3 COO Edris Bemanian on his observations of pricing pressures from the likes of Amazon and Lidl. “The biggest trend is that pricing and assortments are becoming more dynamic and localized,” Edris says.  He notes that e-commerce is now becoming a fundamental part of retailers’ strategies versus just a “me too” approach. Read the full article in Andnowuknow.com.

18 Feb 2017

Shopping Revolutions: The Future of Grocery Stores

Drive Through Supermarkets? A Revolution in Grocery Retail

Traditional grocery stores are phasing out and rapidly losing appeal to the 21st century shopper. With millennials at the height of their rule and a growing shift towards online and instant shopping, the existence of the list-making and cart-pushing shopper is moving towards extinction.

According to a report released by the U.S. Department of Agriculture, the greatest change in U.S. food shopping behavior is the extent to which food shoppers now rely on non-supermarkets as a source of grocery supplies. Long gone are the days when you opened your fridge, made a shopping list of necessary items and spent the morning cruising through the aisles of the closest and most cost-effective grocery store.

The changing mindset of the average consumer who demands an easier, faster and more convenient shopping experience has forced several industries to adapt. Conventional supermarkets are not as appealing in a world with a diverse amount of shopping options, and major retailers are actually starting to feel the pressure to adapt and meet a new set of needs.

From smaller store formats to online shopping, big grocers are wiping the beads of sweat off their foreheads and largely divorcing the “traditional” store formats.

Here are the top 3 ways large-scale grocers are innovating to win back their customers:

1. Convenient Store Formats

Large grocers have been creating smaller, easily-navigable versions of their mother stores with the format of a typical convenience store. Connected to gas stations, the idea is to create a quick and easy shopping experience for consumers who are bound to stop for a bite to eat as they wait for their tanks to fill up.

This past month, Walmart has been a huge player in the game and unveiled their newest convenient store, a “C-Store,” in Rogers, Arkansas. The 25,000 square foot building offers a hot food bar with quick to-go meals such as paninis, nachos, hot dogs and sausages. The new store offers a similar format to that of a classic 7-11 with coolers of beers, sodas and other beverages as well as aisles stocked with grocery staples: milk, eggs, frozen meals and pizza. Walmart has experimented with this type of store in the past in Crowley, Texas and other regions in Arkansas.

Kroger, one of the world’s largest grocery retailers, also opened up their version of a C-Store in College Station, Texas last year. Their take on the smaller store format features 16 gasoline pumps, convenient merchandise and a barrage of coffee and fountain beverages. If the goal is to make act of grocery shopping convenient at a variety of locations, then these grocers are hitting the target. Filling up gas will now become part of the same errand as grocery shopping.

2. “Grocerants”

Most grocery stores like Safeway, Whole Foods and Raley’s design their deli and hot meals sections to be an easy, sit-down spot for hungry customers to munch on a quick meal. There’s never been anything particularly attractive about the food options in these delis, so grocery stores have decided to switch their focus and hone in with full force on revamping and glamorizing these in-store eateries.

Meet the newest revolution in dining experiences: the grocerant. It’s a hopeful attempt at creating a hybrid between grocery shopping and fine dining by picking high-end restaurants or restaurants with name recognition and incorporating them into the store layout.

The supermarket chain Hy-Vee has a Market Grille Restaurant in over 20 of their stores. A Whole Foods in New York City has a Yuji Ramen inside their store. A Gateway Market in Iowa even has a beer program, where consumers can fill up pints from the in-store bar and shop with a beer in hand.

If the idea is to attract customers back into stores by offering them tasty, well-known dining options, the food has to be tempting enough to get them to sit down to a meal. Grocers figure that customers are probably more inclined to use the time before enjoying their meal or after the calorie boost to shop for products.

Grocers will be able to yield a better experience for the shopper if the shopper can save on time and money and consolidate their day’s errands, like eating, into a one-stop shopping excursion.

3. Online Services

Technological innovations have been one of the most dynamic tools for shopping evolutions. Making a shopping list? There’s an app for that. Comparing prices between similar items? There’s an app for that. Need groceries delivered? There’s even an app for that.

Over the last few years, grocers like Safeway, Raley’s, Costco and Wholefoods have begun utilizing online shopping platforms and delivery systems with the aid of tools such as Instacart or Google Express. These kinds of services completely remove the need for consumers to set foot in a grocery store.

Amazon is the Stephen Curry of grocery innovators, as Amazon has made huge strides in emerging into the grocery retail market with Amazon Grocery, Amazon Pantry and their newest technological revolution, Amazon Go.

Amazon Go is Amazon’s first physical grocery store and has the format of a traditional store but promises the convenience of online shopping. They reel in customers with the tag, “No lines, no checkout- just grab and go!” Customers walk in, scan their phones over a sensor that detects their account within the Amazon app, grab whichever food items they want off the shelves and simply walk out of the store when they’re finished. Amazon’s “Just Walk Out Technology” uses sensor fusion and computer vision to identify the item that was put in the physical cart and adds it to the virtual cart on the app. The Amazon account is later charged and sent a receipt.

The first store opened up in downtown Seattle, and Amazon is eager to announce additional locations for their new stores in the next few months.

Grocers have had to become more creative, strategic and innovative in the way they market to consumers and grow relationships. With ideas such as grocerants and Amazon Go already taking off in earnest, there’s no predicting the upcoming innovations and evolutions grocery retailers will be fighting to bring to the table.

Photo Courtesy: CSNews